Charity Report Highlights Need for Trustee Vigilance

The need for charities to exercise strict controls over the disbursement of significant sums was made clear in a recent report by the Charity Commissioners into a small charity.

The charity, which operated to promote active sports among the disabled, suffered a theft by a trustee who had subsequently died. More than £10,000 was recovered and the Charity Commission informed. The Commission's investigation revealed that the charity's annual returns and accounts had been filed late and that the details of the trustees as returned were out of date.

However, the chief issues relating to finance were that the charity's finances were under the exclusive control of a single trustee and that although a professional fundraiser was used, there was no evidence of the legal agreement with the fundraiser, who was effectively under no control.

If you are involved with a charity as a trustee, you have significant responsibilities. The Charity Commission publishes a guide called 'Internal financial controls for charities' and another called 'Managing charity assets and resources', which should be read, understood and complied with by all charity trustees. These can be downloaded from the Charity Commission website.

In principle, losses to a charity which result from the negligence of trustees can leave the trustees personally liable. It is common for small charities to depend on very few people and to adopt a casual attitude to financial controls, but this is a risky strategy.

The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.

What our clients say:

"My expectations were greatly exceeded and I can’t imagine a better service elsewhere. Please keep up the good work. I would be happy to recommend you to anyone."

"I would like to thank Trafina and her secretary for the diligent, informative manner in which they handled my case to its eventual successful conclusion. I would have no hesitation in using your services again."

"This was my first time using a solicitor and I must say that it was a pleasant experience. Although the reasons behind needing your assistance were not pleasant, Barry on numerous occasions settled my mind. Thanks Barry Peet, you were great."

"Michelle was efficient and friendly, fantastic service."

"I was very happy with the service from Kathryn Winstanley and have no suggestions for improvement"

"Everyone at Alker Ball Healds was very helpful and friendly in every way. Thank you"

"I was very pleased with your service. Kath Leach handled the sale very professionally and I will certainly use you again."

"Thank you for the efficient and prompt way in which you dealt with my matter."

"Thank you for all your support and advice during my recent claim."

"Many, many thanks for handling my case in a most professional but caring way."

"I am very pleased with the outcome and received more than I expected."

"I would not hesitate to recommend Alker Ball Healds to anyone; your service has been second to none."